Back in 1986 Huey Lewis was telling Americans that it was Hip to be Square. Today, Kelli Donley wants everyone to know "it's cool to be cheap."
Ms. Donley, an executive at a non-profit group in Tempe, Ariz., told The Wall Street Journal (WSJ) that much has changed in the last year as she and her social circle have adjusted their shopping behavior. Instead of talking about the latest buy of designer threads at Nordstrom or other upscale department stores, today the talk is about a special find at a thrift shop.
"Our retail and manufacturing clients are seeing almost an aversion to consumption," Todd Lavieri, chief executive of Archstone Consulting, told WSJ. "In previous downturns [such as in 1991 and 2001], we have often seen shopping as therapy." Today, according to Mr. Lavieri, "People aren't shopping to feel better. They actually are not shopping to feel better."
America's new frugal attitude is consistent with the emphasis of environmental issues. Ms. Donley refers to buying second-hand apparel as "conserving clothing." This second benefit of not spending, some say, makes them feel even better about going the non-material route.
J. Walker Smith, president of Yankelovich, said his firm's research shows Americans moving away from "freewheeling consumption" toward "a culture of responsibility,"
Pamela Danziger, president of Unity Marketing, said some consumers have decided that "spending money on luxury is a poor use of resources in a climate of high gas prices and rising carbon footprint."
Wendy Liebmann, chief executive of WSL Strategic Retail, told WSJ, "People are saying, 'We are going to save money, and we are going to save the environment.'"
Discussion Questions: Are affluent Americans done with "freewheeling consumption" and moving toward "a culture of responsibility"? What does this mean for brands and retailers?